In 2024, the Guangzhou Maritime Court (GZMC) organized 155 online court auctions of 106 items, of which 86 were successfully sold for RMB 211.9633 million in total, with an average premium rate of 43%. Among them were 74 ships, with a total transaction price of RMB 162.2096 million, marking a new high in terms of both annual number of such court auctions and number of successfully auctioned ships. This indicates that the interests of creditors in over 100 maritime enforcement cases were realized, and that numerous production tools and assets associated with the marine economy were released.

In recent years, GZMC has carried out its enforcement activities under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as well as Xi Jinping Thought on the Rule of Law. Centering on the Maritime Power Strategy and the requirements on building a "New Maritime Guangdong", the Court has been upholding fundamental principles while breaking new ground. It has optimized auxiliary services of maritime justice, including new methods for online court auctions, yielding good results.

Bulk Cargo Auction at Unit Price

On February 27, 2024, GZMC successfully auctioned a batch of Bubinga wood in pairs (a material for making high-end furniture) online on Taobao Auction at a unit price of RMB 229,000 per hundred tons. When the transaction was confirmed, the interested parties, the buyer and the presiding judge weighed the goods on the spot and determined its total weight at 386.29 tons with a total price of approximately RMB 886,000. This batch of Bubinga wood in pairs, priced at RMB 893,000 originally, had failed to be sold at multiple rounds of court auctions organized by a local court in 2022. Its successful auction nearly two years later in 2024 was attributable to the creative adoption of the unit-price mechanism, which eliminated the bidders' concerns about the uncertain quantity of the goods and motivated potential bidders to bid. This innovative method is very helpful in solving the issues concerning court auctions of bulk goods such as sand, coal, and ore. It provides fresh insights on resolving related cases.

Smart Appraisal System for Quick Auction

After comprehensive studies, GZMC has launched a self-developed big data-based smart appraisal system for online ship auction (the "smart appraisal system"), designed to help to swiftly execute and conclude ship auctions involving criminal, administrative, local court commissions or negotiations between the interested parties. When a ship is seized for auction, the smart appraisal system generates a "Big Data-Based Smart Appraisal Report for Ship" based on the basic parameters and conditions of the ship, and then the Court organizes the parties to negotiate and determine the starting price based on the appraisal. Thus, the auction procedure commences quickly without the need for the ship appraisal process as required by a conventional auction. In 2024, a total of 26 ships were auctioned with the aid of the smart appraisal system, with a successful auction rate of 100% and an aggregate transaction price of more than RMB 36.78 million, saving an average of 42 days in case handling time as well as over RMB 800,000 in appraisal fees.

Staggered Auction of Similar Ships

The start and end times of an online court auction are set by default in the auction system to 10 am on the auction day. However, in practice, items of the same type and similar performance sometimes need to be auctioned at the same time. If the auction ends at the same time, different bidders may fail to bid for the items or miss the auction in the bidding delay stage. In 2024, GZMC successfully auctioned seven Shunda crew boats, 11 Xingu container ships and six Yuancheng bulk carriers through the staggered auction method. The seven Shunda crew boats were auctioned at a pace of one per day, and finally all were purchased by a leisure fishing company in Yangjiang. The 11 Xingu container ships and the six Yuancheng bulk carriers were auctioned at a pace of one per hour within a day. After multiple rounds, all the 17 ships were successfully auctioned at reasonable prices. The staggered auction method gives sufficient time for bidders to bid against each other and acquire desired items.

Live Auction

Affected by the subdued shipping market, the first round of auction of 11 Xingu container ships failed to yield good results, with only two sold at the starting price, and the remaining unsold nine entering the second-round procedure. More than 10 days after the auction announcement was posted online, the market response was much below expectations. In order to capture the attention of potential buyers, GZMC joined hands with the People's Court News and Media Agency to launch a live auction of these ships during the Double 11 Festival. The auction went live simultaneously on more than 30 platforms including the People's Court Daily WeChat Channels, the People's Daily APP, CCTV Social & Law Douyin Account, and CCTV WeChat Channels at 09:30 on October 31, attracting more than 1.31 million online views. All 10 ships up for auction were sold, of which six were sold at a price above that at the first round.

The enforcement procedure is at the back end of the judicial procedure and is thus known as the "last mile" for ensuring judicial justice. As a key part of the enforcement procedure, online court auction is an important tool for courts to dispose of property, helping applicants realize their legitimate rights and interests. Only a people-centered enforcement procedure, which places equal emphasis on political, social and legal effects, can truly demonstrate dynamic justice, deliver rigorous, fair justice and promote social justice.